Oil Prices Fall 2% Amid Hopes of Limited Saudi Supply Disruptions

Oil prices fell 2% on Friday, extending losses for a third straight session. The decline came as concerns over Saudi supply disruptions eased due to reports that the country was working to restore its export capacity. Brent crude futures fell $2.3, or 2.2%, to $102.53 a barrel by 0636 GMT, while US West Texas Intermediate futures fell $1.85, or 1.8%, to $100.04 a barrel.

Markets largely shrugged off concerns about new threats to supplies even as Saudi Arabia and Yemen's Iran-backed Houthis exchanged fresh strikes across their border on Thursday. This move expanded the Middle East war front but did not appear to significantly impact oil markets, which were more focused on Saudi Arabia's ability to resume exports.

Priyanka Sachdeva, head of market insights at Phillip Nova, said 'Recent efforts to restore Saudi export capacity have reduced some of the immediate supply anxiety.' However, analysts noted that oil prices remain high and are waiting for evidence of a clear supply improvement. Transporting oil through the region remains risky, with Iranian state media reporting that a Togo-flagged oil tanker was struck while attempting to make an 'illegal passage' through the Strait of Hormuz on Thursday.